Home / Knowledge / News / Apparel/Garments / Clothing exports to get leverage from Jan 1
Clothing exports to get leverage from Jan 1
Dec '10
There are sound reasons for the International Monetary Fund's apprehension regarding Cambodia's constantly shrinking export base, but in spite of the slow rate of economic improvement amongst these nations, the indications for major markets – the United States and Europe for next year appear to be rather good than expected.

The International Monetary Fund (IMF), while considering that 40 percent of the Cambodia's overall exports are towards the US and Europe, has warned the garment sector of the dangers that are likely to follow in the long-run because of a fragile world economy. However, all the indicators right now are suggest that Cambodia's garment industry would have a steady demand from these major markets in the early part of next year, which indicates that the earnings, at least, will keep on increasing.

Moreover, from January 1st onwards, Cambodia will have duty-free access for almost all its garment exports to European Union as it is going to adopt a new law on the rules of origin, which minimizes the responsibility of value addition on the exporting country.

As stated by the Garment Manufacturers Association of Cambodia, the new legislation would greatly benefit the country, as under the current legislation the country many times does not enjoy the zero -duty status owing to its dependence on the imported raw materials.

Thus it follows that, despite of financial crisis in Portugal, Greece, Spain and Ireland, the demand for Cambodian garment is believed to rise owing to their reduced cost and increased ability to compete other world markets already enjoying zero-duty status, post imposition of the new rule.

Also, the sales figures registered by the retailers like JC Penney Co, Target and Macy's, and clothing labels like Abercrombie & Fitch in the US last month, too, remained to be above expectation. All of them import garments from Cambodia. Theoretically, this should lead to a reduction in the stocks and raise the demand for Cambodian garments in the coming year.

But then, General Ken Loo, Secretary of GMAC, had said that it is not certain that all this would result in a total revival of the sector or increase the revenues of the garment units in Cambodia, as with this year's recovery, the Kingdom has yet not been able to wipe out last year's loss. Apart from this, since the very beginning of the current year, there has been a jump of 60 percent in the cost of fabrics and the cotton prices, too, escalated at an even greater pace.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: India ITME

Textiles | On 8th Dec 2016

Industry needs to create 1cr jobs in 3yrs: Kavita Gupta

Sharing several initiatives laid out by the government in R&D,...

Textiles | On 8th Dec 2016

Package will boost made-ups sector: SIMA

The reforms package approved by the Union Cabinet to boost employment ...

Textiles | On 8th Dec 2016

Cabinet okays reforms to boost jobs in made-ups sector

The Union Cabinet chaired by prime minister Narendra Modi has given...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search